Poultry industry calls egg price surge ‘an aberration’

Even as egg prices soared to an unprecedented ₹7 a piece, the poultry industry sees it only as an aberration.

The trade community says an average price of ₹4 an egg for the financial year 2017-18 could help bail out the farmers, who face constant volatility in pricing.

The sudden spurt in egg prices across the country hit the headlines, triggering concerns among consumers. Though 2017 season is considered to be the best for the industry, the price surge happened well ahead of that season.

The jump was due to the staggered decrease in ‘layers’ (egg-laying birds) over the last three years because of poor farmgate prices. The drop in ‘layers’ had resulted in a reduction of capacities, creating supply-demand gaps, leading to the sharp rise in price, industry leaders said.

“The prices were ruling just above ₹3 the last three years. This was not viable for farmers. This put pressure on their capacities, triggering a shortfall in production. But this price (₹7) is not going to hold. This is only temporary,” E Pradeep Rao, President, Telangana Poultry Federation, told BusinessLine.

Addressing the 11th edition of Poultry India 2017 here, Eatala Rajender, Telangana’s Finance and Planning Minister, a poultry farmer himself, had said that farmers could survive only if they get an average price of ₹4 an egg for the financial year 2017-18.

Industry growth Harish Garware, President of the Indian Poultry Equipment Manufacturers’ Association (IPEMA), said the production of broiler chicken is expected to grow 7.5 per cent this year to over 49 lakh tonnes. The ‘layer’ production for the year is pegged at 84 billion eggs, up 5 per cent over last year’s output.

“The demand for processed chicken meat is seen growing 15-20 per cent annually,” said Harish Garware, who is here for the Poultry India expo.

COMMENT NOW